There are many options, like payday loans, to help people who are going through rough financial times. Unfortunately, while some institutions seek to help those hurt by the recession and the economy, scammers and con artists will no doubt continue to try to take advantage of those people.
- Think you can have your cake and money, too? If it seems too good to be true, it probably is.
Last week, I wrote about some financial scams of 2008. Today I came across an article that summarizes some scams we are likely to see in 2009. The best weapon in the war against poverty is knowledge, so here’s some ammunition for you.
Don’t get duped by phony debt counselors
Many Americans will be trying to get out of debt this year. In response, many scammers will be posing as people who can help. In 2008, con artists posed as debt counselors who charged an up-front fee, then took the money and ran. This trend is expected to continue if consumers don’t get wise.
One money expert recommends checking with the The National Foundation for Credit Counseling to check the legitimacy of any operation. Also, don’t respond to the first ad you see. Shop around and make sure you find a reputable, trustworthy credit counselor. In my words:
If you need someone to help you manage your debt, make sure you find them; they don’t find you.
Don’t pay for promises
Some scams involve charging money upfront and promise a loan, line of credit or credit card. Legitimate lenders do not ever “guarantee” a loan. Fees are only assessed after a loan is approved. For instance, if you apply for payday loans, you’re told upfront how much you’ll be charged, but not until after you are approved. And you don’t have to pay the fees until you pay back the loan.
If a lender tries to charge you fees before you are approved for a loan, walk away. Chances are this “lender” is a fraud.
Too good to be true
We’ve all seen the ads. “Work from home and earn $1,500 a week!” Most of us know that if it sounds too good to be true, it likely is.
The way these scammers make money: They tell you you must pay for instructions or a contact list to begin your “sure-to-be-a-success” at-home business. When is the last time you started out a job by paying for it? If you want a legitimate job, make sure the money is flowing in the right direction from the start.
Don’t do online buyer’s dirty work
Are you trying to sell something online? If so, beware. There are con artists out there who will agree to pay the asking price, but insist that they must write the check for a larger amount, usually thousands of dollars more.
They’ll offer some reason, such as needing to pay a shipping company, and ask you to wire transfer the overpayment amount. I think we all know where this is going. Your money will disappear, the check will bounce and you’ll end up paying the fees and footing the bill. If someone offers to buy something online from you and asks you to move some money around for them, respond with an adamant “DO IT YOURSELF!”
Check out Part II
So those are a few scams to be wary of this year. But I’ve got more! Check back later today for “Payday Loans Can Help | Scams Will Hurt| Part II.”
It is really sad how many online scams there are these days and how many people are still falling for them. They only thing you should ever pay up front before using it, is groceries.